Lido Announces v3 Update

Developers of the liquid staking platform Lido plan to release the v3 protocol update in the summer of 2025.

Introducing Lido V3: Ethereum Staking Infrastructurehttps://t.co/SYNSBW6S6R

Advancing Ethereum staking with stVaults.

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— Lido (@LidoFinance) February 11, 2025

The core feature of v3 is the modular smart contracts stVaults, allowing users to customize the staking mechanism, including setting fees and creating lists of trusted operators.

The update will be rolled out in three phases:

1. Creation of restaking vaults based on existing technologies and formation of preliminary deposits, which will transition to stVaults upon mainnet launch.
2. Deployment in the testnet and development of integrations with partners.
3. Launch of stVaults on the mainnet.

Lido DAO will determine the timeline for the update’s release in both the test and main networks.

Developers noted that they aimed to make the new functionality “as versatile as possible,” but primarily focused on institutional stakers, node operators, and asset managers.

According to the project’s blog description, stVaults exist as a separate non-custodial platform alongside the Lido Core protocol.

The use of the new mechanics will remain voluntary. According to the creators, this allows participants to “explore individual strategies and consider new trends in asset redistribution” without exposing the rest of the ecosystem to additional risk.

In 2024, the TVL in Ethereum liquid restaking protocols increased by nearly 6000%.